20
QuizMultiple Choice

Economic Decision-Making and Microeconomics — Test

Question 20 • Personal Finance and Economics

In economics, if a good is inelastic,

Answer
A
producers have lost an interest in manufacturing it.
B
consumers have lost an interest in purchasing it.
C
its supply or demand is not sensitive to price changes.
D
its supply or demand is too sensitive to price changes.

Explanation

A good is inelastic when the quantity supplied or demanded changes very little in response to a change in price. In other words, its supply or demand is not sensitive to price changes, which matches choice C. It does not mean consumers or producers have lost interest, or that quantity changes a lot when price changes.

AI-written and checked against the verified answer.

Previous
Next